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In my opinion the expected result of the test cases disallowedSubst00503m3, disallowedSubst00503m4 and disallowedSubst00503m5 of set ElemDecl should be invalid for XSD 1.1 because they violate clause 4 of Schema Component Constraint: Element Declaration Properties Correct. As described in http://www.w3.org/TR/xmlschema11-1/#key-val-sub-type a complex type definition S is validly substitutable for another complex type definition T if: "S is validly derived from T subject to the blocking keywords in the union of K and T. {prohibited substitutions}, as defined in Type Derivation OK (Complex) (ยง3.4.6.5)" So in difference to XSD 1.0 this also considers the prohibited substitutions of T (i.e. the value of the block attribute of the complex type definition "Type" in the concrete examples).
Needs further research. Once the test suite is in its new location this research will be easier.
I agree with Andreas. The spec has been deliberately changed. In XSD 1.0 you were allowed to say that Member1 is in the substitution group of Head, but saying this had no effect, so the instance is invalid. In XSD 1.1 we've changed it so instead of being ineffective, it's an error. (Saxon issues a warning at schema processing time; the code that issues this warning carries a comment which could be interpreted as slanderous.)
As far as I can see the same reasoning also makes the following invalid: disallowedSubst00105m disallowedSubst00106m2 disallowedSubst00501m2 disallowedSubst00502m3 disallowedSubst00502m4
To try and sum up my reading of the current rules in ordinary English: (a) if you declare an element M as being in the substitution group of H, and H blocks substitution, that's not in itself an error, it just means M can't be substituted for H. (b) however, if the type of M is not substitutable for the type of H, perhaps because either H or the type of H blocks substitution (or restriction|extension, if the type of M is a restriction|extension), that is an error - it makes the schema invalid. This is the case that has changed since 1.0. I suppose it's pointless to ask why the distinction?
Other affected tests in the Microsoft ElementDecl test set: elemT062 elemT063 elemT064 elemT065 elemT066 elemT077
Test msData/additional/addB114.xsd has the same problem.
Resolved: change the outcome of the listed tests to invalid for 1.1.